Okay, I'll bite.
I paid for a single year's Gold subscription and didn't resubscribe when it ran out. I felt I wasn't getting value for money. At all. In the slightest.
I game a lot across many platforms, and paying for the privilege to access online services feels crazy to me. Unfortunately, because I didn't resubscribe, my 360 is now less useful, and it has kinda been relegated to a kids' machine with Kinect (my daughters use it for Dance Central, mostly); I use it rarely because to get full access to its capabilities I have to pay a subscription, and I see no reason to do this when I can play fully on PS3 or PC or Vita or whatever else for free, and get significantly better discounts than Microsoft ever offer (Steam, I'm looking at you). So, all multiplats are better for me on PS3 or PC.
So, what could Microsoft do to make me consider resubscribing?
Not sure.
Playstation have already done the free-games thing, so if MS duplicated that, it wouldn't really inspire me to take up another subscription when PS+ already offers so much across two gaming platforms (and it does offer a shed-load of games and extra services for the cost of a single retail title per year -- that's good value to my eyes). MS would have to offer me a unique service that other platforms currently don't have available (much like PS+ did when it started to offer free games). As it stands, Microsoft offers me nothing I can't get from other platforms for free, and that, for me, is unacceptable. I cannot justify paying for Live.
So, to answer the OP: I don't know what Microsoft can do, exactly, but I do know it has to be something new. What that would be, I don't know, but I do know it wouldn't be something like Twitter access, or Facebook access, or Netflix access, or LoveFilm access, or whatever, as all of that already comes free elsewhere (on my PC or my phone, for example). It needs to be a new, unique service to attract me now.
I understand that others, especially single platform owners, are happy with what Microsoft offers. However, I am not. As it stands, they need to offer me much more to attract me back into the fold.
